May 2010

05/20/2010

Norfolk – The Virginia Port Authority Board of Commissioners will meet in its regular session on Tuesday, May 25, at noon in the board room of the VPA offices on the sixth floor of the World Trade Center building in downtown Norfolk (23510). The agenda and meeting materials can be viewed at the following Web address, though some materials are still being updated: http://www.portofvirginia.com/corporate/board-room.aspx.

05/17/2010

Norfolk -- On Friday, May 21, the Port of Hampton Roads maritime community will gather at the Half Moone Cruise & Celebration Center in downtown Norfolk to celebrate the nation's 77th Annual National Maritime Day.

This national observance recognizes the service of the merchant mariner and the sacrifices made by many to deliver goods to all Americans. Of the more than 14,000 ocean going registered cargo vessels worldwide, 286 -- about 2 percent -- are U.S. –"flagged" or registered ships, according to the U.S. Merchant Marine. The day's focus is to promote public awareness and highlight the roles and work performed by licensed wage mariners (deep sea, coastal, and inland), and all those who put to sea on our behalf as Americans.

The Propeller Club -- Port of Norfolk, Nauticus, Virginia Maritime Association, Virginia Ship Repair Association, Virginia Port Authority and the Hampton Roads Shipping Association are all sponsors of the event. Joe Flanagan, from the local ABC affiliate, WVEC-TV 13, will serve as the emcee. The keynote speaker will be the Virginia Secretary of Transportation Sean Connaughton.

The event will run from 11:30 a.m. to 1:30 p.m. Tickets will be $45; for more information call 757-628-2681.

05/13/2010

NORFOLK – Governor Bob McDonnell used his remarks at the 90th annual Virginia Maritime Association banquet held May 13 to announce that the Virginia Port Authority (VPA) and APM Terminals Virginia had reached an agreement in principle leading toward a 20-year lease of the APMT Portsmouth terminal to the VPA.

"Combining this incredible facility with our natural assets will substantially increase the marketability of this port and position Virginia to become the leading port on the US East Coast faster than we anticipated," McDonnell said. "This agreement must still gain the approval of the Virginia Port Authority Board of Commissioners and their counterparts at APM headquarters in The Hague, but I'm confident in those approvals.

"This is a watershed moment for The Port of Virginia that has taken nearly 18 months of work to accomplish. I want to thank Governor Kaine and his Administration for starting this effort, and I am pleased that we were able to continue and now conclude this important acquisition for Virginia's economy and global competitiveness.

"For the last 30 years, the most significant event in the history of this port was unification of the state-owned terminals under a common operator. Thirty years from now, I firmly believe that tonight's announcement will be viewed in retrospect as equally significant."

This agreement coincides with the opening of several strategic cargo-driven transportation projects that will increase container volumes at The Port of Virginia during the next 10 years:

Virginia Beach -- Daniel M Thornton Jr., a former Norfolk City councilman (1966-70) and member of the Virginia Port Authority Board of Commissioners (1970-1982) died Sunday, May 9; he was 89.

Mr. Thornton was the retired chairman of Southgate Corp., a trucking and warehousing business founded in Norfolk in 1892 and sold in 2003.

Mr. Thornton was elected to serve on the Norfolk City Council in 1965 and upon entering office in 1966 he spoke about the city's maritime potential: "I have said this before, but I repeat my conviction that maritime growth is the most important challenge facing Norfolk. The port offers the greatest potential for economic advancement and stability of any single facet of our area's existence."

In 1970, his family's long-time business interest in the maritime industry won him an appointment to the newly-constituted Virginia Port Authority. The VPA was established by then Gov. Linwood Holton in order to operate and market Virginia's major ports as a single port service.

In referring to the VPA board, Gov. Holton said, "It is my judgment that management and financial know-how are the keys to whether the ports can be brought together through negotiations."

Through significant and sustained investments from the state, the VPA moved to modernize the region's independently operated piers and to improve the area's channels in order for the newly unified ports to more effectively compete with other seaports along the east coast.

Thornton served as a VPA commissioner until 1982 overseeing the unification of the marine cargo terminals.

In 1952, Mr. Thornton joined his father at Southgate Corp. as an assistant manager for the company's trucking division. Southgate operated principally in the warehousing, trucking and distribution business. The company concentrated mainly in the distribution of import and export shipments arriving from and departing through the area's marine and rail terminals.

In 1974, Mr. Thornton became president of the company and a few years later he was successful in purchasing 12 acres in the Norfolk Industrial Park for new corporate offices and a distribution facility. He became chairman in 1990 and retired from the business in 1992.

Mr. Thornton earned his undergraduate degree in civil engineering in 1943 from Virginia Military Institute.

Upon graduation he joined the Marine Corps and was commissioned a lieutenant. He fought with the 6th Marine Division which took part in the assault on and capture of Okinawa and was awarded the Bronze Star Medal (with V) while serving as a platoon leader in the 6th Engineer Battalion. In addition, he witnessed the surrender of the Japanese forces in this area of China on Oct. 25, 1945.

He was recalled to active duty with the 2nd Marine Division from 1950 – 52 as a captain.

05/07/2010

Norfolk – The first major expansion in more than a decade has been approved for the region's Foreign Trade Zone, known as FTZ #20.

"There are many benefits to operating within a Foreign Trade Zone," said Kevin D. Burwell, director of business analysis and strategy for the Virginia Port Authority, the regional oversight body of FTZ #20. "This Foreign Trade Zone coupled with the growth of The Port of Virginia holds a lot of potential for the right operation and we hope this expansion will serve as a selling point for new business."

Located primarily in Southeastern Virginia, FTZ #20 encompasses more than 10,000 acres of general-purpose sites and four subzones – it is among the five largest FTZs in the nation. Moreover, in the latest annual report filed for fiscal 2010, FTZ #20 had more than $106 billion of merchandise moved through the zone.

Besides the expansion of one its largest general-purpose zone users, Givens Inc., there are five new sites which can now promote zone usage. Those sites are:

Site 19: Shirley T. Holland Commerce Park is the first site in FTZ #20 to be located in Isle of Wight County and has 323 acres.

Site 21: Virginia Regional Commerce Park is in Suffolk and has 85 acres.

Site 22: Port Norfolk Holdings, LLC is under long-term lease with Givens, and is within the Norfolk Industrial Park.

Site 23: Virginia Commerce Center is in Suffolk and has 101 acres.

Site 24: Westport Commerce Center is in Suffolk and has 220 acres.

The active subzones for FTZ #20 include Canon Virginia, Western Refinery, and Stihl.

Authority for Foreign Trade Zones is granted by the Foreign Trade Zones Board, which chaired by the US Secretary of Commerce. Under FTZ Board regulations, this authority to each grantee includes the ability to establish, operate and maintain the unique zone. Zones are regulated by US Customs and Border Protection.

The FTZ program helps American companies improve their competitive position by allowing domestic companies to defer, reduce or even eliminate Customs duties on products admitted to the zone. The FTZ program encourages U.S.-based operations by removing certain disincentives associated with manufacturing in the United States.

When companies increase their cash flow, save taxes and improve their bottom line by locating their operations in FTZs, there are multiple benefits for the community: 1) Economic growth and development are stimulated because jobs are retained and created in the community. 2) New firms coming to an FTZ create jobs specific to themselves and opportunities for suppliers and service providers in the community. 3) FTZs attract new business investment. 4) And, a community with a FTZ may experience an improved infrastructure and expanded tax-base as a result of higher employment and the influx of new businesses.